Assets

Cash $ 1,500

Marketable Securities 2,500

Accounts Receivable 15,000

Inventory 33,000

Tot. Curr. Assets $52,000

Fixed Assets (net) 35,000

Total Assets $87,000

Liabilities and Stockholders Equity

Accounts Payable $12,500

Notes Payable 12,500

Tot. Current Liab. $25,000

Long-term Debt 22,000

Total Liabilities $47,000

Common Stock (par) 5,000

Paid-in Capital 18,000

Retained Earnings 17,000

Total Stock Equity $40,000

Tot Liab. And Stockholder

Equity $87,000

3. For ratio calculations (30 points) 2 points each except were noted Higginbotham, INC Balance Sheet ($000) Higginbotham, INC Income Statement ($000) Sales (all on credit) $130,000 Cost of Good Sold 103,000 Gross Margin 27,000 Operating Expenses 16,000 Earnings before Interest and Taxes 11,000 Interest Expense 3,000 Earnings before Taxes 8,000 Taxes 3,000 Earnings After Taxes $ 5,000 Other Information: Stock Price $9.50 Book Value per Share $8.00 Number of Shares 5,000,000 Use the Balance Sheet and Income Statement of Higginbotham, INC to answer the following: 1. Calculate the following liquidity ratios. Current Ratio - 1.00:1 Quick Ratio 1.15:1 Calculate the following Activity Ratios. Average Collection Period - 42 Days Inventory Turnover 3.12 Fixed Asset Turnover 3.71 Total Asset Turnover - 1.49 Calculate the following financial leverage ratios. Debt ratio Debt-to-equity ratio Times Interest earned ratio Calculate the following profitability ratios. Gross Profit Margin .79:1 Net Profit Margin Return on investment Return on Stockholders equity Calculate the following market-based ratios Price-to-earnings ratio Market price to book ratio 6. Express the return on stockholders equity ratio as a function of the net profit margin, total asset turnover, and equity multiplier. (3 points bouns)